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SimpliFin • 8m
In Investing, 20% = 25%. I haven’t gone crazy… When investing in stocks or smallcases, frequent rebalancing can severely impact your returns due to Short-Term Capital Gains (STCG) Tax. Here’s why: 🔹 Direct Stocks or Smallcase: Frequent rebalancing triggers a 20% STCG tax on gains. So, if your pre-tax returns are 25%, frequent rebalancing can drop it down to about 20%. 🔹 Mutual Funds Advantage: Mutual Funds can rebalance their portfolios without triggering STCG tax. Thus, a 25% return here effectively equates to the same post-tax, unlike direct stocks or smallcases. 🔹 Note on Charges: This comparison doesn’t even include brokerage and other charges that can further eat into your direct stock or smallcase returns. Takeaway? Avoid frequent rebalancing to minimize tax outflows. Mutual Funds offer a tax-efficient alternative, allowing fund managers to handle rebalancing for you. Are you optimizing your portfolio? #Investing #MutualFunds #TaxEfficiency #Simplifin
Actively looking for... • 1y
As a beginner with NO knowledge in stocks/mutual funds, what should my first step be to get into investing? How can I start? Should I - 1) Study Stocks (also, please suggestbest resources to get strted with) OR 2)Practically start with mutual funds
See MoreChartered Accountant... • 4m
Breaking Chains, Building Clarity! 💡🏛️ Just write about the New Income Tax Bill 2025, and it feels like history in the making! 📖✨ Finance Minister Nirmala Sitharaman has introduced a bill that promises to simplify, modernize, and revolutionize In
See MoreHit & Trial • 1y
When I started investing in stock markets, I cared about: 100x returns Multibagger stocks Sharing profit screenshots What peers thought about me After getting grilled in the Market, I care about: Risk per investment Overall consistent annual retur
See MoreStart loving figures... • 4m
Is This the Right Way to Analyze Stocks? A colleague recently pointed out that a structured approach is key when investing, and skipping steps can lead to costly mistakes. They follow a Top-Down Analysis Framework, which breaks down like this: 🔹 M
See MoreDoing what I love. • 5m
How to Make Your Investment Work for You 💡 Want to buy something big but don’t want to strain your finances? Here’s a clever strategy to turn part of your investment into a source of income. 1. Don’t Pay Upfront: Instead of paying upfront, invest
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